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NEW YORK - The cryptocurrency market faced a significant downturn today, with Bitcoin's value plunging nearly 10%, erasing a substantial amount of its market capitalization. The sharp decline comes amidst broader market anticipation of increased volatility ahead of the upcoming Bitcoin halving event.

Arthur Hayes, a noted figure in the cryptocurrency space, had earlier forecasted a potential drop in Bitcoin's price, attributing it to changing policies by the Federal Reserve. Despite the current downturn, Hayes remains optimistic about Bitcoin's future, expecting a recovery following the initial impact of the Fed's policy shifts.

In addition to market movements, there are strategic shifts occurring within the investment landscape of cryptocurrencies. BlackRock (NYSE:BLK), the world's largest asset manager, is actively seeking approval from the Securities and Exchange Commission (SEC) to launch a spot Bitcoin Exchange-Traded Fund (ETF).

This move by BlackRock is seen as a significant step towards mainstream financial adoption of cryptocurrencies, signaling a growing interest from institutional investors in digital assets.

https://www.investing.com/news/cryptocurrency-news/bitcoin-value-drops-10-as-market-braces-for-volatility-ahead-of-halving-event-93CH-3273882